Interest

INTEREST

SOME ADDITIONAL LEARNINGS …

How mathematics becomes a useful tool for the success of business?

            1.) In a business there are many types of it so that they can use basic function in a way that can help in their distribution of their individual works.

    

    2.) In a business the goal was to be a successful or to be a popular company for the help of having an interest on any product or activity that they have in their business to be possible in the way they want.

    

    3.) In a business, one of their aim was to expand or to be a permanent company and in order for them to do so, they must know the simple formulas and simple concept of specific math problems.

We shall now tackle the interest portion of this page: (The other concept of Interest are in the 1^st page)

Formula for getting the simple interest:

I= Prt

Meaning:

P = Principle amount

r= Interest Rate

t= time

Example:

Example 1:

John wants to have an interest income of $3,000 a year. How much must he invest for one year at 8%?

Solution:

Step 1: Write down the given

P = $3,000

r= 8%

t= 1 year

Step 2: Jot down the Formula

I = (p)(r)(t)

Step 3: Plug in the values 

3000 = p × 0.08 × 1
3000 = 0.08p
p = 37,500

Answer: He must invest $37,500

Example 2:

BDO offers an interest rate of 2% for their personal credits. Assume Sharon loaned an amount of P100,000. How much inteerest will she have to pay for 2 years?

I = Prt

I = (0.02)(100,000)(2)

I= P4,000

Example 3:

Mina lend Momo P10,000 for a year at 9.5% interest compounded monthly.

Solution:

 

 

A = P10,992.58